Reforms to push India’s GDP to over 4.5 trillion USD

The ongoing reforms undertaken by the new Indian government can propel India’s gross domestic product (GDP) to over $ 4.5 trillion by fiscal year 2020.

According to a report by Dun and Bradstreet, the global business information, knowledge and insight provider, released on August 22, India’s average growth rate is expected to hover around 7.5 percent during the fiscal year 2015-2020.

“These are exciting times for India with the ushering in of a new majority government at the Centre after three decades,” Dun & Bradstreet India Senior Economist Arun Singh.

The report, ‘India 2020: Economy Outlook’ appraises the Indian economies strengths and weaknesses and then estimates economic growth based on them.

The biggest challenges for India’s economy in the coming years, according to Singh, are going to be poor monsoon, structural bottlenecks and geo-political situation.

“India is likely to achieve a higher average growth rate of around 7.5 per cent during FY15-FY20, spurred by large infrastructure investment by the Government along with increased investment activity by the private sector.”

According to the report, New Delhi has been making the right moves and sending the right signals to enhance India’s reputation as being investment friendly economy.

D&B noted that India’s economy will recover from the ongoing phase of slowdown towards the second half of FY15 and gather pace by FY16. The report added that for the first quarter of this fiscal year the country will to clock a GDP growth rate of around 5.2 percent. That rate is expected to rise to 5.5 percent for FY15.

The new Indian government, led by Prime Minister Narendra Modi, has signalled a bold economic reforms agenda, and has already taken some decisions like increasing the FDI in insurance and defence sectors, which has revived global confidence in the India Story.

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